As a small business owner or independent contractor, following these tips for organizing financial records and paystubs will help you feel more organized and productive. Organizing financial records is an important step in managing a business.
How to Organize Financial Records: 5 Tips
Many small business owners feel overwhelmed with stress when trying to organize their financial records. By following these 5 tips, you will have a much easier time keeping things organized.
1. Know How to Store Financial Records
It is important to keep a designated location to store your financial records in. Consider using a two-drawer filing cabinet or even a deep desk drawer. Take your time to organize a filing system so your financial records are easy for you to find. You should have a particular area to place any tax receipts or other important records, so everything has its own place.
2. Reconcile and File Receipts
You likely have a lot of receipts on hand, which can cause a lot of clutter. There is no need to keep a receipt from 2005 anymore. Get rid of any old receipts that you know you don’t need. Consider scanning receipts and storing them on a hard drive or in the cloud. This way you will still have all of your important receipts, but you will have more room and less clutter.
Label your digital files with a name that explains what it is so you can easily find it on your computer. If there was ever a fire for some reason, all your receipts will be safe because they were digitally stored. It takes time to scan receipts, but overall it is a good choice.
3. Have a Proper Paystub System
Having a proper paystub system is an essential part of being a business owner. As a business owner or independent contractor, you likely feel that organizing pay stubs is time consuming and sometimes unorganized. If you use a paystub generator like Paystubs 365, you can simply create paystubs and print them when needed.
All you will need to do is answer some questions, fill out your employees’ names and details, their pay rate, if they are paid a salary or hourly, and the pay period and hours they have worked. You will have a variety of options to choose from for the color, design, and format in which the paystubs will be displayed. Advanced pay stubs will contain additional information such as deductions.
There is a small fee to download, print, or email the paystubs after they are created. If you do not use any bookkeeping software, this paystub system is the best way to go.
4. Eliminate Unnecessary and Outdated Paperwork
Getting rid of unnecessary paperwork can be difficult because of the fear of throwing something useful away. Keeping outdated paperwork and unnecessary records causes clutter and disorganization. Offering employees traditional paystubs is one way to limit unnecessary paperwork and bookkeeping.
Following the seven-year rule is helpful when knowing how long to keep financial records. Once you have kept your paperwork for seven years, it is usually safe to discard the paperwork.
5. Establish a Plan for Keeping Things Organized in the Future
Now that all your paperwork is organized, you will need to establish a plan to keep it that way. Mark down on your calendar a day each week to organize your paperwork so things don’t become messy. Staying organized is key to organizing your finances.
Organize Your Financial Records with Our Paystub Generator
Organizing your financial records will be time well spent, especially when it comes to having your paystubs more easily accessible. These tips for organizing financial records will be of good use for your business, especially Paytubs 365. Generate Pay stubs today with our paystub generator!